The survey summarizes key findings from a 2013 survey of 24 major outsourcing companies in Hungary: - Respondents employed over 14,000 people across seven cities, with 83% located in Budapest. IT was the largest employer at 27% of the sector's workforce. - Flexible employment options like flexible hours, part-time work and remote work were common, offered by 54-63% of companies. - Benchmark metrics included an average recruitment lead time of 45 days, 71% employee engagement, and 13% average annual voluntary attrition. - The majority of companies provided services internally, while 8% served both internal and external clients. Growth was projected at over 16% in

1. hoa ssc
survey
2013
Introduction
Methodology
This survey had been initiated
by the Hungarian Services and
Outsourcing Association in order
to have an overview about one
of the most dynamically growing
sector of the Hungarian economy.
HOA intends to repeat this survey
on a yearly basis to provide reliable,
comparable industry measures
to its members and the investors
considering entering the market.
As the intention of the HOA benchmarking survey
was to get an overall picture about the whole sector.
The questionnaire covers 3 major areas: services,
people and technology.
One of the most important goals
of the survey is to provide
benchmarking data for industry
members about the Hungarian
SSC market. The survey has
been focused on the key
information and data required for
a comprehensive analysis of the
market and its trends.
Processes
Locations
The survey targeted all currently
active shared services centers in
Hungary irrespective of their
HOA membership. Data has
been collected from an online
questionnaire in June-August
2013.
People
Technology
Process
Questions are divided into two types. In case of
one question group the companies had to choose
the appropriate answer with ticking the box, and in
case of the other type of questions a direct answer
was required in numbers or percentages.
The individual requests of the market players
have been taken into consideration in regards of
questions and topics by maintaining relevance level
for the entire SSC sector.
The online benchmarking tool will be available
to all survey participants allowing access to the
benchmark results by locating the own companies
personalized performance compared to the relevant
market result.

2. 1. General findings
24 major Hungarian outsourcing companies have
completed the survey. Seven industries were represented
in the survey of which Services, Industrial production and
Telecom took the biggest stake.
Participants employ more than 14.000 people in seven
cities. The participating companies in this survey
represent at least half of the total Hungarian SCC market.
According to the latest measures the estimated size of the
Hungarian SCC market employs approximately 25,000
employees. Comparing Budapest and other locations,
83% of the headcount works in Budapest. Among other
locations Debrecen is the most popular, employing more
than the total of the other locations in the countryside.
Headcount breakdown by location
‚ Budapest
460 ‚ Debrecen
1 735 ‚ Székesfehérvár
250 ‚ Other locations
Respondents of the survey
employ 600 person in average,
which indicates the bigger SSCs
were over-represented in the
survey.
11 793
Number of participants
12
10
8
6
4
2
0
0-200
201-500
501-1000
Categories by headcount
1001
38%
29%
25%
13%
8%
4%
2
hoa ssc survey survey |e 2013
hoa ssc | Fi rst di t ion, 2 013
0%
10%
20%
30%
40%

3. Who are the customers?
Fifty percent of the SSCs provide
services for internal clients only,
while others serve exclusively
external customers. Less than ten
percent of the companies work
for both internal and external
clients.
8%
42%
‚ Internal
‚ External
‚ Both
50%
International companies prefer to establish a separate
legal entity for their shared service operations as
more than 70% answered, that their SSC operates in a
separate legal entity. We also need to consider that some
Hungarian SSC simply don’t have any other operations
in Hungary.
The cost-based concept of settlement seems typical in
the Hungarian SCC industry, 83% answered, that they
run the business on a cost-based concept. Considering
that 50% of SSCs provide services to external customers
as well, it has to be pointed out that bigger stake of
Hungarian SSC market provide services directly to
external companies, while the income comes from the
mother company based on cost.
Subsidies in the indrustry
With regards of subsidies
only 54% of the respondents
have demanded any kind of
subsidies either from Hungarian
government or from EU sources.
Since the bigger companies are
over-represented, it is assumed
that in the total industry the
subsidy portion is below 50%.
45%
17%
38%
‚ GOP fund
‚ EKD fund
‚ No subsidy
hoa ssc survey | 2013
3

4. 8
6
4
2
0
What services the SSCs purchase
from local subcontractors
HR services
42% of Hungarian SSCs don’t
use local contractors at all. The
most commonly used services
provided by Hungarian service
providers are HR, Finance
and IT services.
38%
Finance services
29%
IT
25%
Logistics
13%
Purchasing 12
8%
Operational excellence 10 4%
Treasury
8
Customer service
6
0%
4
70% 2
60%
10%
20%
30%
40%
¢ What services the SSCs purchase from
local subcontractors
0
50%
Country advantages and competitiveness factors have
40%
also been examined in the survey. The participants
30%
pointed out four major risks, ranked in the following
20%
order: labor arbitrage, language capability, skill arbitrage,
10%
and country risk. 38% of the participants mentioned
13%
country risk among the biggest threats of the industry,
0%
8%
which seems to be a major risk considering the SSCs
4%
provide their services mainly offshore.
38%
29%
25%
100%
80% 0%
Country risk
10%
20%
30%
40%
60%
70%
60%
40%
50%
20%
40%
0%
30%
20%
¢ Biggest threats in
the SSC sector
10%
100
0%
e
ity
d
ge
ral 90 ility
lity
80trag
abi Proxim arbitra ogy an Cultu y stab
bi
l
l
r ar ge cap
o
l
ntr
ou
Ski Techn
Cou
Lab angua
L 100%
60
40
80%
How frequently the 45
threat was mentioned
20
60%
14
In the SSC market the IT sector is the0
leading employer.
40%
More than 27% of all SSC jobs are offered in IT, 25% of
20%
the total SSC headcount works in Finance/Controlling
SSCs. The third biggest SSC employer is Customer Services
0%
(16%), while the fourth one is HR representing 5%.
100
4
hoa ssc survey survey |e 2013
hoa ssc | Fi rst di t ion, 2 013
80
90

5. 8%
4%
0%
10%
2. Benchmarks in SSC sector
20%
30%
40%
70%
60%
50%
E-invoice coverage of participants
40%
Finance and controlling
‚ 0-25%
27%
Almost 40% of the invoices
are electronically issued. The
purchase order coverage is almost
67%; the first-time hit rate in
purchase orders is exactly 50%.
The compliance of harmonized
payment terms is near to 90%.
77% of the companies use one
chart of accounts globally.
30%
‚ 25-50%
20%
‚ 50-75%
10%
‚ above 75%
0%
100%
9%
80%
46%
60%
18%
40%
20%
Average recruitment leadtime (days)
0%
HR
The average recruitment leadtime is 45 calendar days. Shared
Services Centers provide high
level training sessions to their
employees, according to the
survey in average 8.5 working days
are provided for training purposes
in each year. Majority, 70% of the
companies use e-learning platform
in their training programs.
¢ Average recruitment leadtime (days)
100
90
80
60
40
45
20
14
0
Minimum
Avarage
Maximum
On-time resolution of tickets as per SLA (%)
100%
12
10
8
6
4
2
Customer service
80%
In average 415 tickets per month
are handled by one employee.
One-third of customer services
SSCs works non-stop (24/7),
two-third works in normal
business hours.
60%
40%
20%
0%
0
38%
29%
25%
13%
100
hoa ssc survey | 2013
80
5

6. Engagement ratio result among
the participants
People
‚ 60-70%
The annual voluntary attrition
rate is continuously improving at
SSC companies – current average
is at 13%. Job grading system
is provided by 95% of the SSCs.
Also 95% of the participants
implemented employee
satisfaction survey processes
resulting in an average of 71%
engagement ratio.
12
10
8
6
4
‚ 50-60%
9%
‚ 70-80%
25%
‚ above 80%
100%
80%
33%
60%
33%
40%
20%
2
0%
0
13%
8%
4%
0%
10%
Less than 9% of the total number of employees are
non-Hungarian citizens. 87% of the total number of
38%
employees has a university or college degree, the SSC
100
sector29%still one of the biggest employer of employees
is
25% a higher education among non-public industries
with
80
offering jobs for more than 20.000 people. 85% of
the SSCs support the education programs by offering
60
educational contribution to their employees. Trade
40
union is very rare among the SSCs; only 10% of the
companies have trade unions within the company.
20
20%
30%
40%
0
70%
Yearly average salary increase
60%
3,50%
50%
3,40%
40%
Salary competitiveness had also
been examined. The average
salary increase in the SSC sector
was 3.1% in 2011, 3.0% in 2012
and 3.4% in 2013.
30%
20%
10%
0%
3,30%
3,20%
3,10%
3,00%
2,90%
2,80%
100%
2011
2012
2013
¢ Yearly average salary increase
80%
60%
40%
20%
0%
100
80
6
hoa ssc survey survey |e 2013
hoa ssc | Fi rst di t ion, 2 013
0
90
20
40
60
80

7. 4%
10%
3,10%
40
3,00%
0%
2,90%
20
0%
10%
20%
100%
70%
40%
30%
20%
20%
10%
0%
0%
100
100%
3,40%
Job sharing
3,30%
Flexible working hours
3,20%
3,10%
Part-time work
3,00%
2,90%
Home working
2,80%
0
90
60
60%
40
60
80
¢ Flexible employment types in SSC sector
14
23 languages are
45
services centers.
languages are in frequency order: English, German,
50%
Italian, French, Hungarian, Spanish, Dutch and
40%
Portuguese. These languages are supported in more than
30%
20%
50% of the companies.
10%
0%
100
90
Supported
80
60
40
0
20
40
60
80
languages
100%
90%
80%
70%
60%
45
20
14
— Supported
languages
50%
40%
30%
20%
10%
0%
English
German
Italian
French
Hungary
Spanish
Dutch
Portuguese
Swedish
Polish
Russian
Slovak
Finnish
Czech
Danish
Turkish
Arabic
Croat
Norwegian
Serbian
Japanese
0
20
100%
90%
supported from Hungarian shared
80%
70%
The most commonly supported
60%
40
40%
0
0%
2,80%
0
3,50%
The flexible employment
types are surprisingly popular
in the sector. 63% of the
companies offer flexible
working hours, part time
work is available at 58% and
home-office is also available
at 54% of the participants.
80
80%
20
20%
40%
Flexible employment types in SSC sector
80%
60%
50%
60%
40%
30%
Potential growth of the industry has also been evaluated.
The average estimated increase is more than 16%, which
converts to more than 2.300 new jobs in the industry in
the forthcoming two years, not-considering any new SSCs
to be established in this period. One of the participants
reported to increase its headcount by 500 FTEs.
hoa ssc survey | 2013
7

8. About HOA
The Association’s mission is to promote the country’s
economic development by supporting the business
services sector, through spreading opportunities to
increase efficiency offered by organizational innovation
and in particular through uptaking the concept of
outsourcing.
HOA is an open, independent, professional organization.
It’s common organizing principle is to participate in
service activities provided to the stakeholders of the
economic and public sector. We act in the interest of the
outsourcing sector and our Members.
www.hoa.hu
Hungarian Outsourcing Association
H-1061 Budapest, Andrássy út 17.
Phone: +36 (1) 205 3317
E-mail: info@hoa.hu
Copyright HOA, 2013
This document is protected by copyright. Any part of this document may be used
for non-commercial purposes with referencing the source for free of charge. The
prior written permission of HOA is required to any other use of the document.